New Delhi, Dec 6 (KNN) The Indian economy is estimated to grow at 6.9 per cent  in 2022-23, from the earlier prediction of 6.5 per cent growth made in October, the World Bank said on Tuesday.

The GDP growth has been revised due to a strong outturn in India in the September quarter of the 2022-23 financial year. “Despite challenging external environment, the Indian economy has demonstrated resilience,” it said.

The multilateral agency, however, lowered its India growth forecast for next fiscal to 6.6 per cent from 7 per cent made earlier.

The World Bank in its latest India development update titled ‘Navigating the Storm’, pointed out that while the deteriorating external environment will weigh on India’s growth prospects, the economy is relatively well positioned to weather global spill overs compared to most other emerging markets. This is partly because India has a large domestic market and is relatively less exposed to international trade flows.

The impact of a tightening global monetary policy cycle, slowing global growth and elevated commodity prices will mean that the Indian economy will experience lower growth in 2022-23 compared to 2021-22, it said in a statement.

"India’s economy has been remarkably resilient to the deteriorating external environment, and strong macroeconomic fundamentals have placed it in good stead compared to other emerging market economies," the statement said quoting Auguste Tano Kouame, World Bank's Country Director in India. “However, continued vigilance is required as adverse global developments persist," said Kouame.

World Bank said that rapid monetary policy tightening in advanced economies has already resulted in large portfolio outflows and depreciation of the Indian Rupee while high global commodity prices have led to a widening of the current account deficit.  (KNN Bureau)